AIR JOSEPH WARD.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9434, 3 May 1909, Page 5

AIR JOSEPH WARD.

SPEECH AT INVERCARGILL. ANOTHER SURPLUS. Per Press Association. Invercargill, May 1. Sir Joseph Ward delivered his promised policy speech here on Saturday. The t* audience, though not demonstrative, was attentive and friendly, the speech being frequently minotuated with applause. THE FINANCIAL YEAR. Sir Joseph Ward said the financial year had been one of the heaviest, and in some respects, the most important, in the history of the Dominion, and he was glad to say that, notwithstanding that a tightness had existed in the money market of New Zealand for some time, oar finances were exceedingly satisfactory. For the financial year just ended, he estimated in the Financial Statement the revenue at £8,985,000, and the expenditure at £8,878,3-16. After bringing forward the available balance of the previous year of £767,849, and transferring £BOO,OOO out of revenue to the Public Works Account, he estimated the surplus at £74,503, and in view of the continued attacks at various times during the year as to the correctness of his judgment, he was not unnaturally more than ordinarily gratified to be able to say that an analysis of the figures show the surplus for the year to be £184.331, that is £309,118 more than’estimated in the Budget. The revenue last year amounted to £9,001,185, an increase of £16,185 over the_ estimate. Comparing the revenue with that of the previous year, it would doubtless afford immense pleasure, and indeed to many surprise, to find that'there was only a decrease of £54,761 on the total receipts of the previous year. The revenue then was £9,055,946, as against £9,001,185 for the year just closed. He was glad to be able to say that the revenue for the year exceeded the expenditure by 1£315,673. The expenditure amounted to £8,785,513, which, if deducted from the actual revenue of £9,001,185, they would ; find left an excess of revenue of ‘£315,672. Dealing with the various heads of revenue, he said that the railways contributed £3,918,507 against actual receipts of £3,165,395 in 1907-8, the receipts showing an increase on the previous year of £153,112. It must be borne in mind that a reduction of fares and freights had been made oi £950,000. Stamps last year brought in £3,591,358, an increase of £40,394 on the previous year’s receipts of £1,950,134. The return from the land and income tax reached £926,000, the exact figures being: Land tax £604,901, income tax £331,044, or £83,194 better than that of 1907-8. s> FALLING OFF IN CUSTOMS. Customs did not come up to estimate by £148,753, the total amount for the year being £3,351,348 as against an estimate of £3,500,000. In his opinion the reasons for this ware: (1) unexpected falling off in import values as compared with the steady increase some years previously; (2) from excessive importation daring 1908 in anticipation of the coming into operation of the extended preferential tariff, which took effect on March 31st of that year. Ao far as he had bean able to see there bad been a considerable falling off in revenue in almost all the more Important oountries B duriug the past financial year, and it should not be a surprise in view of what had taken place in many other countries to an enormous extent proportionately by comparison with New Zealand that our .revenue should be £54,761 below what it was the previous year. A fall in our revenue was predicted by him in his last Budget, but a gratifying feature of this was that the revenue was higher than the expenditure by oyer £215,000, The revenue receipts for the past five years have been as follows : £ 190-4-5 7,282,870 1905- .. 7,584,359 1906- .. 8,399,075 1907- .. 9,055,946 1908- .. 9,001,185 A calm review of the position must have a reassuring effect. A satisfactory feature of the year’s transactions was that £BOO,OOO was transferred from ordinary revenue and paid into the Public Works Fund in aid of public Works. During the year they had been able to reduce the floating debt of £700,000 by a further £150,000, and having during the two former years paid off £300,000. There had therefore been no less a sum than £450.000 of this amount paid off since the Ward Government took office. In other words their indebtedness in three years had been reduced by £450,000, the amount now outstanding being only £350,000 as compared with £700,000 three years ago. RAISING LOANS. He spoke of satisfactory loan arrangements made by the Govern-, ment. In connection with loans be mentioned that in addition to the anthoriti6S“already given Parliament bad authorised the raising of £1,260,000 for public works, and £1,000,000 for the acquisition of the Manawatu railway, and it might come as a surprise to most people to know that practically the whole of this large amount of money was raised in London on the most favourable terms and with (a minimum of coat to the Dominion. In the Dominioniitseif the amount of money borrowed from the public was less than £IOO,OOO, and this amount was taken up In the Dominion unsolicited. On the other hand a much larger sum had been paid off in this country for the redemption of bonds falling,due. i The applications from local bodies for loans for roads and bridges have been much larger than nsual during the past year. This is no doubt due to the difficulty local authorities find in obtaining money at a reasonable rate of interest within the Dominion. Daring the year £373,000 have been spent in the acquisition of land for settlement. Apart from the financial operations that had been mentioned £1,493,833 had been advanced in the Settlers* Department and £398,185 in the Advances to Workers’ Department, and the total £1,792.019 actually paid out during the financial year was a record for the Department, the increase on the previous year’s figures being £390,635. These figures showed how ridiculous was the statement which had been made by those Who had been pinpricking the Government declaring that the Department had ao funds. REVIVAL OF TRADE. He had no hesitation in saying that the result of the past year; went to show on what solid' foundation

the Dominion rested, and in spite of the stringency of the money market there was a steadiness and general confidence which angnred well for prosperity. Expenditure under both headings of permanent and annual appropriations had considerably increased. He was notsatisfied with the way ; in which the' expenditure was mounting np and felt that a reduction must be made, and it was for this reason that the Government had already set to work to make reductions in publio service to the extent of at least £350,000 per annum. He wished, however, to say that he did not think there was -any cause for apprehension. He had that day received, a telegram from the Secretary of Customs informing him that there was an increase of £9600 in the Customs duties for the month (of April, as compared with the corresponding month last year. There was also a very much better feeling among commercial men throughout the country as to the prospects and conditions of trade, and the increase in the Customs duties was a healthy sign. Daring the year the sum of £2,169,278 had been expended on public works, as against £1,874,438 spent during the previous year. The principal items of expenditure ware : :* ,i £ Railway construction .. 713,000 Addition to open lines .. 390,000 Roads .. 469,000 Publio buildings .. 285,000 Telegraph extension .. 163,000 The business of the post and telegraph department had progressed in a most satisfactory manner. The revenue bad increased by £91,000, reaching a total of £914,000 for the financial year just ended. The expenditure amounted to £807,500, leaving a substantial balance of £106,500 on the., year’s transactions. Notwithstanding pessimistic reports, the deposits during the savings bank year ended December 31st, 1908, amounted to £9,674,075, an increase of £32,411 over the previous year and the total amount at credit of the depositors rose from £11,523,231 to £12,159,394. Thus £636,063 was added to the savings of the population in 1908, although in the September and December quarters the withdrawals exceeded the deposits,. It was a gratifying fact that in the March quarter this year deposits were again in excess and there was no indication so far that the June quarter would reverse the satisfactory position. THE MORTGAGE TAX.

There had been an agitation in one portion of New Zealand, particularly Wellington, to endeavour to have what is known as the mortgage tax repealed, on the ground shat It was preventing money from coming into New Zealand for investment. It was astonishing to find that during the last six years there was an increase of in mortgage apart entirely from Government Departments, of £1,664,893, or an increase of nearly 40 per cent, of capital invested upon mortgage during these years. Ha then contended that the Advances to Settlers Department had driven out the mortgage companies formerly operating in New Zealand. The total amount of capital withdrawn by them would amount to two millions, and as fast as it was withdrawn it was replaced by the Advances to Settlers’ Office, which had invested over eight millions. The real aim of those who suggest the abolishment of the mortgage tax was virtually to make an attack upon the land taxation of the country. If the tax were abolished it would mean the abolition of the land tax upon a total value of over 73 millions sterling, and the incredible fact remained interest was ruling in New Zealand at 4 pa., cent, large sums were sent for investment at those rates and the mortgage tax existed at 25 per oent. more than it is now, whereas to-day investors were getting up to 7 per oent. It was foolish reasoning to believe that while they did not object when the rata was low we should now be told they should do so when the rate was higher. In reference to money being seat out of the country, there was nothing in the statements except that in a few oases where people have sold large estates in New Zealand they had gone to another country to try to purchase large estates there. The laud system was intended to break up large estates, and it could hardly be expected that the Government were going to change a material portion of the law which was intended to benefit the country to provide for exceptional cases of that kind. The tightness of the money market which some people had attributed to the Government was not due to any such cause. On the contrary, the amount of money that the Government had brought to the country during the last year was enormous. They had lent out thorngh four Government Departments in round figures the sum of two and a half millions in twelve months. The real cause of the tightness of the money market in New Zealand was easily ascertained. Dnring times of nnnsnal prosperity there was a plethora of money available at low rates of interest, which induced many people to go in for speculation in land and business and other investments generally. It was helped on by unusually high prices in our wool market and in some of the other staple produce. The fall in the price of wool and flax occurring suddenly reversed the position of there being an excess of money available into it being looked up, in many oases reclamations having to be made as well as in numerous instances considerable advances being required by those who bad purchased land either for speculative or investment purposes and upon which they foo nd they oonld not when asked to do so hurriedly realise. Some people have blamed the banks, but he did not think there was anything to warrant that. more banks. The con elusion that he had personally come to was that with growth of business with the increase of settlement and "with the large areas of fresh land being taken up in N.Z. the banks were not sufficient for the amount of business required to- he carried on in the country. Either those institutions carrying on that branch of the 'work of the country should largely increase their capital and available funds, or else facilities should be given for an increase in the number of banking institutions to keep pace with the expansion of business that bad gone on and would continue to go on throughout the Dominion. He was not in accord with the advocates of a paper currency, who wish to supersede the present system in operation in the country. Business was conducted upon the basis of a gold standard, and until the time arrived for the co-operation of the ■ great lending countries from which

the Dominion had borrowed large sums of money the first consideration to be kept before them was to ensure not only good faith being kept by those who borrowed the money, hut that no alteration De made in a matter so delicate and difficult ,as that of the currency. DEFENCE. The question of defence was one upon which no hasty ocuciuslou should be arrived at. The Government would submit proposals to Parliament making provision for a gradually improved system upon that which existed, and he thought the good sense of Parliament would enable a system to be established m accordance with what was feasible from both the practical and financial standpoints. RAILWAYS. The business for the year ending March 31st last had been very satisfactory, the revenue being approximately £5,929,625, against £3,761,937 for the previous year, an increase of no less than £167,588. Passenger traffic, which had grown in a most remarkable manner for many years past, showed an increase of over 700,000 passengers for the year, the number of tickets issued being in round figures millions. Tne. total tonnage handled exceeded that of 1908 by no less than 37,340 tons. The mileage of line open for traffic has been increased by 170 miles. The net return would again exceed the 8 par cent which the Government decided in 1898 that railways should be expected to return. LAND SETTLEMENT. In land settlement during the year there had been a very satisfactory increase. A total 0f... 2402 settlers took up 1,381,133 acres. The total number of selectors of Crown land at March 31st, 1909, was 25,315, and the total area held by these selectors was 18,263,924 acres. Witn regard to Native lands since October 31st, 1900, an area of 1,699,047 acres had been rendered available by sale or lease or mortgaged either through the agency of the Boards or by the direct agency of the owners themselves. RETRENCHMENT.

Referring to dismissals from the Publio Service, Sir Joseph said that none of those who would be affected would be turned ont during the winter, or inlsuoh oases as retirement from the service is found necessary they would be , compensated for a period which would cover it. He was convinced that it was essential that by amalgamation and retrenchment they inust relieve the expenditure from the consolidated fund to the extent of a quarter cf a million per year. “The argument doubtless is raised by some,” he went on, “as to why is it were necessary previously to have cumbsrous departments which are now being merged they are not being continued now? My answer is that in everything the circumstances and necessity materially alter cases. A great deal of excellent work has been done by virtually all the departments that are being merged, and the heads of the departments know from me personally that it is not against them or against their administration that the change is being brought about, but because of the fact that the work of the Departments having now been put into practical effect, under the Acts governing them, the work of the Department can now be carried out with considerable economy by some of the larger Departments to which they have recently been attached, and which can carry ou their new duties under the same law.” NEW LEGISLATION. Speaking of the Government’s policy, be said that his aim this ses■ion*would be to place on the Statute Book some important measures among which would be the National Annuities Bill, and the Land Settlement Finance Bill. Their chief desire was not to pass a largo mass of new legislation, but to restrict their efforts to improving and perfecting by well discussed and considered amendments the operation of existing measures. After references to Prison reform, amendment of the Bankruptcy Laws, the' Companies Act, and the Municipal Corporations Act the Prime Minister referred to roads. MAIN ROADS AND RAILWAYS^

Legislation would be introduced defining the main roads of the Dominion in order that tthey may be taken over by the Government, and provision will also be made for all other roads to be niaintained by the local authorities. Legislation would bo introduced for making provision for the completing and equipment of railway lines in various portions of the Dominion where”the people express their readiness and willingness to undertake such responsibilities in return for the all important work of railway extension. In oases where examination made impartially by reliable officers showed that a deficiency of revenue was likely to occur the protection of ensuring the deficiency being made up should he put into practical operation. “I do not wish it to be Inferred that a railway line should commence to earn interest, say at the rate of even 3 par cent, from its inception, but it is not in the interesst of the country that a system of making costly railway lines should be allowed to be continued where it can be reasonably ascertained beforehand that there will be no probability of them paying a comparatively small rate of interest. ” The matter was one of sufficient importance to engage the close attention of Parliament and that opportunity would be given during the coming session. THE DREADNOUGHT OFFER. The .Executive had the power and it had the duty to act in any emergonov or new situation. Parliament was entitled to have a full explana-_ tidn of the action of the Exeouitve, and every member of Parliament in his place in the House was entitled to use his unfettered judgment in the matter. To have asked individual members of Parliament before the Government acted to commit themselves would have been most unfair. The Executive must act and take the responsibility and risk the subsequent ratification. He might by telegram have got a majority of members committed and thus tied their bands, but he preferred to leave them free and to follow, first the constitutional course, second, the courageous course, and thhd, the course which left all members of Parliament untrammelled to deal with the question. He had the greatest confidence in the people of the Dominion and in the members of Parliament in the matter of the defence of the country, and in their loyal and practical support to the Old Land by their rising above party and dcicg whet he wxg certain he people of New Zealand aa a whole

desired at all costs—to stand by the Old? Land that bad stood by them and given them its protection for She last 70 years. ... THE FUTURE. In conclusion he said lie hoped that he had placed before them information that would be of interest to the people generally. There eonld be little doubt that 'excepting in the eyes of the extremely 'pr jndieocl partisan, the financial results of the year were uf an exceedingly grati Iying£charactei:. Ho looked forward to the coming session uf Parliament with the hope that work upon the lines of progress he had indicated would be carried out He preferred to have less legislation, but what was done of a good and useful character. He felt entitled to say that if the New Zealand people continued to display those splendid characteristics of industry and effort the remarkable progress which the Dominion had made for some years past would still so on. If the country’s, financial operations were pursued with caution-there was no reason why they should not look forward with confidence to the further prosperity and development of the Dominion and increasing comfort of its people. A vote of thanks and confidence was carried without dissent.